-Refer to the Figure Above

question 29

Multiple Choice

-Refer to the figure above.If the relative price of T were to increase,then the price line would

• A)shift out in a parallel fashion.
• B)shift in a parallel fashion.
• C)become steeper.
• D)become flatter.

---

Definitions:

Free-rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for them, leading to underprovision of those goods or services.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that anyone can consume them without diminishing their availability to others, such as public parks and clean air.

Competitive Markets

Markets characterized by a large number of sellers and buyers, which helps ensure fair prices and efficient distribution of goods and services.

Nonexcludable

A characteristic of a good or service that prevents the owner from effectively excluding others from using it, often leading to free-rider problems.